India Inc\u2019s business sentiment has improved during July-September quarter as the government gradually unlocked the economy and business activity resumed, according to the CII\u2019s business outlook survey.<\/p>\n
The latest CII Business Confidence Index has surged to the level of 50.3 in July-September 2020, bouncing back from its lowest reading of 41.0 recorded in April-June 2020, the industry chamber said in a statement.<\/p>\n
\u201cThe stellar recovery in the index has been supported by the remarkable increase in the Expectations Index (EI), which rose 46% quarter-on-quarter, to the level of 55.2, as nationwide lockdown restrictions were lifted and businesses gradually began to reopen during the July-September quarter,\u201d it added.<\/p>\n
CII Director General Chandrajit Banerjee said while a recovery is underway, it could be tremendously expedited through continued government support and handholding of businesses during this crisis.<\/p>\n
The survey was conducted during August-September 2020 and saw participation of over 150 firms across different sectors.<\/p>\n
Over half of the respondents stated that the weakness in domestic demand is likely to be the topmost risk to business confidence in the next six months.<\/p>\n
Nearly 30% of the respondents feel that business activity may return to pre-pandemic levels by Q1 FY22, the statement said.<\/p>\n
\u201cWith regards to the general economic prospects, more than third of the respondents (35%) foresee a contraction higher than 4% in India\u2019s GDP in the financial year 2020-21 as the significant setback to economic growth has been further aggravated by state-imposed lockdowns to curb local outbreaks,\u201d it added.<\/p>\n
Besides, it said, there are still many ad hoc restrictions being imposed by the states which are an impediment to the unlock process.<\/p>\n<\/div>\n